Local Income Taxes and Revenue Needs

May 4, 1966

Report Outline
New York City's Need for More Revenue
Growing Revenue Demands of U.S. Cities
Introduction of Local Income Taxes
Problems in Levying a Local Income Tax
Special Focus

New York City's Need for More Revenue

New york city's new tax program, proposed in March by Republican Mayor John V. Lindsay, reflects a basic problem facing virtually all great urban areas of the United States. Mounting population and the rising costs of expanded and improved services have pushed city administrators almost to the wall in their quest for money to finance even the most necessary urban activities.

Mayor Lindsay, citing a prospective municipal deficit of more than $500 million for the fiscal year beginning July 1, told New Yorkers that the city faced “a financial crisis.” Defending his controversial tax proposals and his record $4.6 billion budget at City Council hearings on the tax program, April 20, the Mayor said that unless his tax program was approved, “We will have to attack the budget with a meat cleaver.” Lindsay told the heavily Democratic Council that he would need its help in making any necessary cuts: “You gentlemen will have to tell me how many policemen to cut, how many firemen, how many hospital workers, how many teachers.”

Lindsay's Proposals For New and Higher Taxes

The Lindsay administration proposes to obtain funds to cover New York's pressing needs through a program that involves new taxes on the income of city workers and increased returns from such existing revenue sources as real estate and stock transfers. The major new levy proposed is a graduated income tax to be imposed not only on city residents but also on suburbanites who commute to jobs in the city. Residents would be taxed on all income regardless of source, while commuters would pay taxes only on wages and salaries earned in the city.

ISSUE TRACKER for Related Reports
State and Local Taxes
May 04, 1966  Local Income Taxes and Revenue Needs
Feb. 13, 1963  State and Local Taxation
Dec. 10, 1958  Local Income Taxes
Aug. 16, 1941  State-Local Finance in the War Emergency
Sep. 28, 1937  State Control of Local Finance
Jul. 09, 1932  New Sources of State and Local Revenues
Sep. 16, 1930  Rising Cost of State and Local Government
Nov. 24, 1926  Increasing State and Local Taxation
Jul. 20, 1925  Problems of State and Local Taxation
State and Local Taxes
State, Local, and Intergovernmental Relations